Amazon Posts Higher Net
As Revenue Increases 29%

Retailer Credits Free-Shipping Strategy

Amazon.com Inc.'s net income more than tripled in the third quarter as revenue continued to benefit from the retailer's strategy of cutting product prices and offering free shipping.

The company also raised the lower end of its 2004 sales guidance, bracketing analyst views, but issued 2005 sales guidance short of Wall Street expectations. Amazon shares fell 8% in after hours trading.